The Democrats ran on shutting down data centers and more tech regulation.

The stock market responded on Thursday with nearly $3 trillion wiped out in just a few hours.

After the Tuesday election, there was a brief rally in the market, but investors pulled sharply out of tech stocks on Thursday to move their funds into safer portfolios.

From CNBC:

The Nasdaq Composite declined 4.7% and dipped into correction territory, trading more than 10% below a record set last month. The S&P 500 was down 3.7%, heading for its worst day since April 2025. The Dow Jones Industrial Average shed 1,531 points, or 2.9%. The Dow erased about all of its advance from Wednesday's massive postelection rally. The small-cap Russell 2000 index decreased 4.5% and also entered a correction.
Stocks related to the artificial intelligence trade, particularly those linked to the chips industry and data centers, slid for a second day. Investors fear that a Democratic sweep of both chambers of Congress as well as victories in key gubernatorial races could decelerate the data center buildout.

Democrats like Bernie Sanders are not helping. 👇

The most historic win for Dems was flipping Texas blue. Incumbent governor Gina Hinojosa specifically ran on blocking data center construction, which would crush the state's recent explosive growth in manufacturing and technology.

Investors are 'stepping away until they get a better sense of the implications of the midterms around the AI capex cycle in particular, which is the biggest economic tailwind we've had going for us for the last, call it, three years,' said Tim Holland, chief investment officer at Orion. 'It's about tone and tenor from the party that did really well, incredibly well, at the federal level and at the state level.'

The bleed-off from the tech industry hit the rest of the market, from construction giant Caterpillar to Nike (though Nike has been in the dumps since they went woke a few years ago).